CGI Group (NYSE:GIB) Hits New 1-Year Low – Here’s Why

CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) hit a new 52-week low on Thursday . The stock traded as low as $59.90 and last traded at $61.12, with a volume of 101388 shares changing hands. The stock had previously closed at $66.07.

Wall Street Analyst Weigh In

Several analysts recently issued reports on GIB shares. Royal Bank Of Canada lowered CGI Group from an “outperform” rating to a “sector perform” rating and dropped their target price for the stock from $150.00 to $100.00 in a report on Thursday, April 30th. Weiss Ratings lowered CGI Group from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 27th. Finally, UBS Group dropped their price objective on CGI Group from $79.00 to $70.00 and set a “neutral” rating on the stock in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, CGI Group currently has a consensus rating of “Hold” and an average target price of $83.67.

CGI Group Price Performance

The company has a current ratio of 0.95, a quick ratio of 0.68 and a debt-to-equity ratio of 0.28. The firm has a market capitalization of $12.65 billion, a price-to-earnings ratio of 10.80 and a beta of 0.47. The company’s 50 day moving average is $68.79 and its 200-day moving average is $77.91.

CGI Group (NYSE:GIB) (TSE:GIB.A) last released its quarterly earnings data on Wednesday, April 29th. The technology company reported $1.65 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $1.65. CGI Group had a return on equity of 18.72% and a net margin of 10.26%.The company had revenue of $2.99 billion during the quarter, compared to analysts’ expectations of $3.05 billion. During the same period last year, the firm posted $2.12 earnings per share. The business’s revenue was up 3.3% on a year-over-year basis. Equities research analysts anticipate that CGI Group, Inc. will post 6.54 earnings per share for the current year.

CGI Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, May 15th will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, May 15th. CGI Group’s payout ratio is currently 9.03%.

Institutional Trading of CGI Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Millennium Management LLC raised its holdings in CGI Group by 786.2% in the 1st quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock valued at $8,141,000 after acquiring an additional 72,277 shares during the period. Kepler Cheuvreux Suisse SA boosted its holdings in shares of CGI Group by 7.5% during the fourth quarter. Kepler Cheuvreux Suisse SA now owns 78,358 shares of the technology company’s stock worth $7,232,000 after acquiring an additional 5,457 shares during the period. Davis Rea LTD. boosted its holdings in shares of CGI Group by 15.9% during the fourth quarter. Davis Rea LTD. now owns 42,200 shares of the technology company’s stock worth $3,900,000 after acquiring an additional 5,779 shares during the period. Jane Street Group LLC grew its position in shares of CGI Group by 29.4% in the first quarter. Jane Street Group LLC now owns 12,858 shares of the technology company’s stock valued at $1,284,000 after purchasing an additional 2,921 shares during the last quarter. Finally, Danske Bank A S grew its position in shares of CGI Group by 24.1% in the fourth quarter. Danske Bank A S now owns 10,834 shares of the technology company’s stock valued at $1,002,000 after purchasing an additional 2,103 shares during the last quarter. Institutional investors own 66.68% of the company’s stock.

CGI Group Company Profile

CGI Group Inc is a global information technology and business consulting firm that delivers a broad range of services including IT consulting, systems integration, application development and maintenance, infrastructure and network services, managed IT and business process outsourcing. The company works with clients to design, build and operate IT systems and business solutions, with capabilities spanning cloud and hybrid IT environments, cybersecurity, data analytics and artificial intelligence, digital transformation and enterprise resource planning implementations.

Founded in 1976 in Quebec by Serge Godin and André Imbeau, CGI has grown from a regional systems integrator into a multinational professional services organization.